ARP Digital won Dubai VARA's in-principle approval to offer regulated crypto-AED conversions after processing $3.5B in volume across 450 clients. The firm already holds a Bahrain license.
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A Bahrain-based digital asset firm has secured in-principle approval from Dubai's Virtual Assets Regulatory Authority to operate as a broker-dealer, marking its second regulated Gulf market.
ARP Digital, backed by the Kanoo family conglomerate, received the VARA nod on April 28. The approval allows the firm to eventually facilitate regulated conversions of digital assets and stablecoins into UAE dirhams. ARP Digital still needs to satisfy VARA's full licensing requirements before serving clients.
The firm already holds a Category 3 license from the Central Bank of Bahrain, obtained in 2024. That license let it build FLOW, a platform for institutional OTC liquidity, cross-border settlement, and currency conversion. ARP Digital has processed over $3.5 billion in transaction volume across more than 450 institutional and corporate clients. The company reported 4x year-on-year volume growth in 2025.
Co-founders Abdulaziz Kanoo and Abdulla Kanoo are part of the Kanoo Group, a conglomerate 135 years old. VARA requires applicants to show compliance with governance, custody, risk management, and anti-money laundering rules before a full license is issued. No public confirmation of a full VARA license for ARP Digital has emerged yet.
Once fully licensed, ARP Digital would offer a regulated on-ramp and off-ramp between crypto and the UAE's national currency for institutional clients. The approval adds to the Gulf's set of licensing rules, with Bahrain, Dubai, and Abu Dhabi each operating separate regimes. ARP Digital's push into Dubai comes as Gulf states jostle to attract crypto business. For broader context on the region's crypto flows, see our crypto market analysis.
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